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LOAN TYPES
Conventional Loan
Conventional home loans finance or refinance primary residences, second homes, and investment properties. They are the most commonly used loans for the purchase of residential properties. The maximum loan amount in Florida (except for the Keys) is $726,200. Conventional loans follow the guidelines set by Fannie Mae or Freddie Mac. This is a good option for people with good to excellent credit, some funds to cover the down payment and closing costs, and a little debt. New home buyers can put down as little as 3%. Learn More
FHA Loan
FHA loans are government home loans insured by the Federal Housing Administration (FHA), a Department of Housing and Urban Development (HUD) branch. The maximum loan amount is $472,030 in Florida. The minimum down payment is 3.5% of the purchase price. The FHA loan offers more flexible guidelines on credit score and debt to income than the conventional loan. Therefore, it is a better fit for home buyers that may not be as qualified. Since it has fewer restrictions, mortgage insurance is required on all FHA loan products; there is “up-front mortgage insurance,” which gets included in the loan amount, and monthly mortgage insurance is a part of the monthly mortgage payment. It is only used on primary properties. Learn More
VA Loan
You may qualify for a VA loan if you are a US military veteran, currently serving in the military, or a surviving spouse of a veteran. The US Dept of Veterans Affairs guarantees these loans, which enables mortgage lenders to offer lower interest rates, 100% financing, and no mortgage insurance. You will need your DD-214 and Certificate of Eligibility (COE) to determine if you can apply for a VA loan. We can assist you in getting your COE. Learn More
Jumbo Loan
Jumbo loans are loans greater than the conventional loan limit of $726,200. The client does have to have a good to excellent credit history, funds to cover the down payment and closing costs and meet certain debt to income ratio guidelines.
Non-Conforming Loan
A nonconforming loan is a mortgage higher than the Federal Housing Finance Agency (FHFA) conforming loan limits or does not adhere to Fannie Mae and Freddie Mac underwriting guidelines. The terms and conditions of nonconforming mortgages can vary widely from lender to lender, but the mortgage rates are typically higher because they carry greater risk for a lender.
Reverse Mortgage Loan
A reverse mortgage is a federally insured loan program that allows homeowners aged 62 or older to access a portion of their home equity in cash, monthly payments, or a growing line of credit while not being required to make mortgage payments. (principal & interest) It is officially called a HECM (Home Equity Conversion Mortgage); the program continues as long as the homeowner/client lives in the property as their primary home. The client is still responsible for paying the property taxes, home insurance, HOA fees, and maintaining the property.
Construction Loan
JA one close Construction Loan provides a client with the funds needed to build their home or make a significant renovation. During construction, funds are used to provide supplies and construction costs. The payments are interest only as well during this time. Once the building is completed, the loan becomes fully amortized based on the loan term. The client can include soft costs, architectural services, and permit fees in the loan amount. Loans are as high as $2 million.
Non-Conforming Loans
Bank Statement Loan
A bank statement loan is a good option for many self-employed clients who do not show enough income with paystubs, W2s, or tax returns to purchase the desired home. A bank statement loan is a non-qualified loan that utilizes 12 to 24 months of bank statements to determine the income level that can be used in the loan process. The maximum loan is up to $3 million; the minimum is $150,000. 12 or 24 months.
Investor Cash Flow Loan
This program allows clients to qualify for the loan based on a rental analysis to determine the rental property's cash flow. Debt Service Coverage Ratio (DSCR) measures the cash flow to determine if the cash flow will cover the mortgage and pay back the loan. The down payment percentage and credit score vary by lender. The client often has to own a primary residence.
Profit & Loss Statement Loan
A Profit & Loss statement loan is another option to purchase the property for many self-employed clients who do not show enough income with paystubs, W2s, or tax returns. The loan is based only on the strength of the business’s profit and loss statement. No bank statements are required. One year or two years of P&L Statements.
Debt Service Coverage (DSCR)
Developed for real estate investors, the DSCR loan enables them to finance the property based on the rent collected. The DSCR focuses primarily on the borrower's credit score and the property's cash flow to determine the borrower’s ability to repay the loan.
Foreign National Loan
A Profit & Loss statement loan is another option to purchase the property for many self-employed clients who do not show enough income with paystubs, W2s, or tax returns. The loan is based only on the strength of the business’s profit and loss statement. No bank statements are required. One year or two years of P&L Statements.
Additional Information
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The non-conforming loans may also include property types that are not eligible for conventional loans; an example is condotels.
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Non-conforming loans are also available for Foreign Nationals.
Refinance
What is a Refinance?
Refinancing is the process homeowners undertake to make changes to the current mortgage. It often is a change to the interest rate or other terms of the loan.
Reasons to Refinance
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Lower the interest rate.
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Reduce the monthly payment.
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Utilize home equity to get cash out to pay off other high-interest debt.
Loan Options
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Fixed-rate or adjustable-rate options are available
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Loan terms range from 10, 15, 20, 25, and 30 years
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Loan Types: Conventional, FHA, VA, Non-Conforming
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Depends on the property and residency type.
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